Washington

Top champagne brands like Moët & Chandon, Veuve Clicquot, Krug and Dom Pérignon are facing massive supply shortages in the US and Europe as pent-up demand for the spirited drink is running their stocks dry, following the easing of Covid restrictions.

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Buoyed by the strong demand after an initial slump in 2021, the champagne makers are now dubbing this phenomenon as the “roaring 20s”—a term used to describe economic prosperity a century ago.

The surge in demand for champagne is being seen as a larger desire for luxury goods across the board among affluent people. After a slight slump in sales during the beginning of the pandemic, companies are reporting impressive numbers as people spend the money they saved during months of lockdowns.

The pent-up demand is co-related with the explosion of high net-worth individuals after the recovery from the pandemic. According to research by the investment bank Credit Suisse, there are now a record 218,200 people classed as ultra-high net worth (UHNW), with assets of more than $50m.

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Chief executive of Moët Hennessy Philippe Schaus has said that 2022 would be “a fabulous year” for its champagne.

“We are running out of stock on our best champagnes. As people are coming out of Covid, there’s been pent-up demand for luxury, enjoyment and travelling,” Schaus told Bloomberg at New Economy Forum in Singapore on Tuesday.

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Schaus, however, did not specify which champagnes were running low, or how low the stocks had fallen.

Another champagne firm LVMH, in its latest financial results, said its “Champagne Maisons” had “enjoyed excellent momentum, which increased pressure on supplies”.

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The company, which is part-owned and run by France’s richest person, Bernard Arnault, said the demand was particularly strong in Europe, the United States and Japan and had been “led by tourism recovery”.

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Overall, champagne and wine sales were up 32 per cent in the first nine months of 2022 compared with 2021, it said.

The trend is uniform across other luxury items, Kering, which owns Gucci, Balenciaga and Bottega Veneta, reported a 14 per cent increase in its third quarter sales, reports the Guardian.

(With inputs from agencies)

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